Nevada's State/Local Tax Burden Second-Lowest in Nation
During the past three decades, Nevada's state and local tax burden has consistently ranked among the nation's lowest. Currently estimated at 6.6 percent of income, Nevada's state/local tax burden percentage ranks 49th highest nationally, well below the national average of 9.7 percent. Nevadans pay $3,245 per capita in state and local taxes.
Nevada's 2010 Business Tax Climate Ranks Fourth
Nevada ranks fourth in the Tax Foundation's State Business Tax Climate Index. The index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: California (48th), Oregon (14th), Idaho (18th), Utah (10th) and Arizona (28th).
Nevada's Individual and Corporate Income Tax System
Nevada assesses no corporate or individual income tax, joining Texas, Washington, South Dakota and Wyoming as the only states to levy neither type of income tax.
Nevada's Sales and Excise Taxes
Nevada levies a 6.85 percent general sales or use tax on consumers, which is above the national median of 5.85 percent. In 2007 combined state and local general and selective sales tax collections were $2,402 per person, which ranks third highest nationally. Nevada's gasoline tax stands at 33.1 cents per gallon, which ranks 8th highest nationally. Additionally, Nevada's counties are permitted to levy "local option" gasoline taxes. Nevada's cigarette tax stands at 80 cents per pack of twenty and ranks 33rd highest nationally. The sales tax was adopted in 1955, the gasoline tax in 1923 and the cigarette tax in 1947.
Nevada Property Taxes: Comparatively Modest
Nevada is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Nevada's localities collected $957.13 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Nevada collected $66.73 per capita during fiscal year 2006, making its combined state/local property taxes $1,023.85, ranking 29th highest nationally.
Federal Tax Burdens and Expenditures: Nevada is a Donor State
Nevada taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. Per dollar of federal tax collected in 2005, Nevada citizens received about 65 cents in the way of federal spending. This ranks the state 49th highest nationally and represents a decrease from 1995, when Nevada received 73 cents per dollar of taxes in federal spending (ranked 48th nationally). Neighboring states and the amount of federal spending per dollar of federal taxes collected were as follows: California (78 cents), Oregon (93 cents), Idaho ($1.21), Utah ($1.07) and Arizona ($1.19).